Wheat Prices Reach Three-Months High Amid Worries About the Russia-Ukraine War

The price of Wheat climbed as much as 8% before finally settling at 6.6% after explosions shook the Ukrainian capital Kyiv, as per Chicago's daily currency exchange report. More missile attacks from Russia have been threatened. A grain export agreement with Ukraine that is due to expire in approximately a month may not be extended, given the conflict's escalating nature. Wheat and other commodities are crucially essential global suppliers from the at-war states.

Wheat futures on the CBOT surged as Russia unleashed an intense wave of missile strikes in Ukraine. The offensive time has to come as the grain export agreement is about to expire, and it seems unlikely that it will be renewed. The recent turn in events means that getting the two parties in the same room may very well be a challenge.

In Chicago, Wheat prices surged to a months-high amid growing concerns that an escalation in the fighting between Russia and Ukraine could further disrupt grain shipments from Black Sea ports. Further, Any Black Sea ports slowdown could increase the price of global food staples, which had recently been declining. There have already been issues with exports of Ukrainian crops due to the growing backlog of ships leaving the port that needs to be inspected in Istanbul.

Furthermore, hot and dry weather in major Wheat-producing countries, including the US, Europe, India, and Argentina, may risk future Wheat harvests. Moreover, low water levels from prolonged drought halted commercial commodities shipments in the middle of the autumn harvest.

As per the ChemAnalyst database, it is anticipated that the world grain prices will keep on escalating due to the Ukraine war and further market dynamics and weather conditions are unpredictable.